OIKN Proposes Additional Rp15.5 Trillion Budget for 2027 to Meet Targets

The Nusantara Capital City Authority (OIKN) has proposed an additional budget of Rp15.5 trillion for 2027 to pursue development targets so that IKN can function as the national capital by 2028. OIKN Head Basuki Hadimuljono, during a working meeting with Commission II of the Indonesian House of Representatives (DPR RI) in Senayan, Jakarta, on Thursday, stated the extra budget is intended to support the construction of legislative and judicial buildings, as well as housing and other support infrastructure. He explained that of the total OIKN budget requirement for 2027 of Rp22.2 trillion, only an indicative ceiling of Rp6.7 trillion has been allocated, leaving an additional budgetary need of Rp15.5 trillion. The indicative ceiling for the 2027 fiscal year is set at Rp6.7 trillion, comprising a management support programme worth Rp592 billion and a strategic area development programme worth Rp6.1 trillion. However, this ceiling was deemed insufficient to meet the total requirement of Rp22.2 trillion, prompting Basuki to present the supplementary budget proposal of Rp15.5 trillion before lawmakers. He detailed that the additional budget is allocated for phase two IKN development amounting to Rp7.4 trillion and phase three development amounting to Rp8 trillion. Phase two development includes the construction of legislative and judicial office buildings, road and integrated utility tunnel (MUT) construction, as well as the building of small dams, retention ponds, and piping networks. Meanwhile, phase three development covers the construction of housing for leaders, members, and staff of the legislative and judicial branches, road and MUT construction leading to legislative housing and the diplomatic compound, alongside the construction of small dams and piping networks. In addition to the extra budget for 2027, Basuki noted that OIKN still requires an additional Rp3.2 trillion for the 2026 fiscal year. Commission II of DPR RI expressed its full support for OIKN’s budget proposal and stated it will conduct in-depth discussions at the next meeting. The commission requested OIKN to promptly submit a detailed matrix of priority programmes directly affected by the 2027 budget efficiency policy and to immediately coordinate intensively with the Ministry of Finance and the National Development Planning Agency (Bappenas).